Property Insiders - Financial Advisers and Property with Joel Hewish

Performance Property Data

“Real estate has really been kept as a separate asset class entirely from the industry, and so financial advisers have never really grown up in an environment where they could recommend real estate in the past.”

Old friends David and Joel Hewish catch up for a chat about the financial planning industry and its relationship to property. Joel is the Chief Executive and Chief Financial Strategist of United Global Capital (UGC), a wealth management firm focused helping clients achieve their full financial potential.

David notes that traditionally financial planners have been anti-property. He asks Joel why most institutional financial planners don’t recommend property, despite it often being in their client’s best interest. Joel suggests that it is because it doesn’t fit the business model of the financial planning business.

Talk turns pretty quickly to the current Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which David thinks is highlighting problems that have been apparent and obvious for years. The question remains, however, whether the Royal Commission will fix the industry’s problematic aversion to property.

Joel points out the legacy aspect of the industry, where it has been slow to evolve and move on from old models of business that saw it focus on insurance and then later superannuation. These businesses were absorbed by the larger financial institutions who in some cases turned their advisement into opportunities to sell their other products.

This goes against what clients have been led to believe and expect, which is that advice will be given in their best interest. David finds it devastating that this often does not occur, and is doubly frustrated that even when property may be in the best interest of the client, it is mostly not advised by the larger institutions.

Joel feels like the industry has struggled to figure out how to monetise property advice. Thus they are incentivised to lead clients towards other options. What David appreciates most about Joel and UGC, is that they truly advise their clients in their best interest, whatever that may be.

Joel notes that it is the younger generation of financial planners who are changing the industry and finding new ways of achieving their clients’ goals. They are entering the industry with more qualifications than their forebears, and have a much better understanding of the whole of the financial services industry and the products available. This matches the wants of the client, who understand more and want more from their wealth management.

Joel outlines the ways in which UGC can help their clients, including through real estate. David makes the observation that this shows that UGC is not “pro-real estate”, but rather “pro-client” matching the strategy to the client’s goals and position.

David and Joel discuss the often strained and dependant relationship between financial planners and property investment firms.

Talk returns to the Royal Commission, and Joel admits he is a little blown away, even though he expected it to turn up some bad actors in the industry. David thinks this will ultimately be a win for independent financial planners, as the larger institutions are being revealed as an unsafe option for clients’ wealth.

David and Joel both find it surprising that there is no regulation around purchasing property, something that for most is a $700K to $1million decision. Joel feels it incredible that the financial services industry has yet to see the need for proper regulation for these types of assets.

Ultimately, David and Joel both agree that the financial services industry, and financial planning in particular, will move to an environment where the client’s interests are absolutely paramount.

About your host, David McMillan

During his 16 years in the property industry David has worked as a property valuer and property adviser to private clients, financial planners, accountants, finance brokers, major banks and governments. He has been involved in more than $500M worth of transactions across Victoria, New South Wales, South Australia & Queensland.

Since 2009, David has been specifically focused on helping medical professionals, expats, business owners and busy executives build effective property portfolios.

David is a fully licensed real estate agent in Victoria, South Australia and Queensland (CEA), Certified Practicing property Valuer (CPV), Qualified Property Investment Advisor (QPIA) and most importantly is an active property investor. David joined the Australian Property Institute in 2001 and is now an Associate (AAPI) and in 2009 became a member of the Real Estate Institute. David currently sits on the board of Property Investment Professionals of Australia (PIPA) to promote ethics in the property investment industry.

About David’s guest, Joel Hewish

Joel is the founder, Chief Executive and Chief Financial Strategist of United Global Capital (UGC). Joel is a highly skilled, educated and experienced wealth management professional. Joel established United Global Capital (UGC) with a vision to bring the world’s best investment opportunities and financial strategies to ordinary people.

With a starting point of first understanding each clients risks, aims and own individual circumstances, UGC has developed a culture of wealth creation starting with wealth protection and risk minimisation.

Joel’s view is that investing, by its very nature is risky. It is the pursuit of a definite outcome with an over reliance on an uncertain future. However, with careful planning, a diligence to risk management and a willingness to learn, you too can benefit from a future that holds much more certainty than was previously available to the ordinary person.

If you would like to learn more about how you can take advantage of these strategies with UGC, contact them on 03 8657 7640 or email [e-mail].

‘Property Insiders’ is one of three segments you will hear on the Performance Property Data podcast. Released every four weeks, they are conversations between David McMillan (Director Acquisitions - Performance Property Advisory) and industry leaders offering knowledge and expertise.

‘The Property Pineapple’ is also released every four weeks and is hosted by Sharon Taylor (Research Analyst - Performance Property Advisory). The show presents listeners with stories from real investors, discussing their wins, and admitting their losses.

And ‘Performance Insights’ are released every Wednesday and Friday, giving you technical information and the lowdown on key property markets around Australia. These episodes are also available as short videos at our youtube channel.

For more information about how Performance Property Data can help you maximise your investment dollar, head to www.performancedata.com.au